Spain's Economy Expands 0.6% in Third Quarter as Growth Moderates

Spain's economy grew by 0.6% in the third quarter of 2026 compared with the preceding three months, according to preliminary figures from the National Statistics Institute released on Friday, October 30. The increase was slightly slower than the 0.7% expansion recorded in the second quarter.

Gross domestic product was 2.7% higher than a year earlier. Both the quarterly and annual readings matched the average estimates of economists surveyed by LSEG, according to Reuters. The figures are preliminary and may be revised as more complete economic information becomes available.

The new data indicate that Spain continued expanding while some other large European economies struggled. France, for example, reported a 0.1% decline in third-quarter output on the same day. The comparison concerns quarter-on-quarter changes, not annual growth or the overall size of the two economies.

Earlier in October, the Bank of Spain raised its forecast for the country's 2026 growth to 2.6%, up from its previous 2.3% estimate. The central bank cited resilient domestic demand, especially private consumption and investment, alongside an improving export outlook. It also projected 2.2% growth in 2027, while warning that inflation, international conflicts and rising bond yields could weaken activity.

A 0.6% quarterly increase means output continued growing, but at a slower rate than in the April–June period. It should not be described as a contraction. Nor should the central bank's annual projections be treated as completed outcomes: they remain forecasts that depend on economic conditions in the final months of the year.

Spain's labour market and household demand have provided support to the economy, although higher energy costs and borrowing rates remain risks for consumers and businesses. The first estimate of third-quarter GDP offers an early measure of activity during the summer and will be subject to subsequent statistical revisions.